Paulson To Cover Y's Losses

Dec 1 2011 | 11:44am ET

John Paulson recently apologized to his investors about his funds' awful performance this year. But at least one client has nothing to complain about.

That's because Paulson several years ago agreed to backstop any losses suffered by the 92nd Street Y, one of New York's premier cultural institutions. Paulson serves on the Y's board, and his Paulson & Co. is the Y's largest outside money manager, running more than a quarter of its $37.9 million in investments.

Paulson isn't the only Y money manager who made that deal; three others have as well, including fellow board member Curtis Schenker of Scoggin Capital Management and Eminence Capital, whose head's wife also serves on the board. But Paulson is probably the only one on the hook for as much as $4 million.

"We're certainly not ashamed of any of this," Y executive director Sol Adler told The New York Times. "This institution has particularly generous board members, including John and a number of others."

In addition to serving on the Y's board, Paulson also sent his two daughters to the institution's exclusive preschool and nursery school.


In Depth

'Smart Beta' Funds In Regulators' Sights, Hedgies May Be Next

Mar 26 2015 | 11:11am ET

Funds that mimic strategies used by active managers for a fraction of the cost could...

Lifestyle

Study: Both Marriage and Divorce Lead to Negative Hedge Fund Performance

Mar 25 2015 | 6:51pm ET

Trouble at home leads to trouble in the market for fund managers, according to researchers...

Guest Contributor

Concerned About Your HFT Exposure? Hedge It!

Mar 26 2015 | 1:06pm ET

High-frequency trading has been a persistent storyline for several years. The trading...

 

Sponsored Content

    Mar 9 2015 | 6:35am ET

    Kelly RodriquesKelly RodriquesAs more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…

Editor's Note